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Visa and Mastercard Stocks: Underpriced and Undervalued, Say MoffettNathanson Analysts

As per recent findings by MoffettNathanson, financial titans Visa, and Mastercard are turning into valuable buys.

Vİsa and Mastercard
Vİsa and Mastercard

MoffettNathanson Adjusts Price Targets for Visa and Mastercard

Top-tier analysts at MoffettNathanson assert that Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA) stocks are currently underpriced. In response, the firm has notably raised its price target for each. The new price target for Visa has been lifted to $320, up from $290. Similarly, Mastercard's target has seen a rise from $460 to $490.

Stock Performance Overview: Visa and Mastercard

Despite a 0.5% dip on Friday, Visa shares have shown promising growth with a 14% increase since the start of this year. Meanwhile, Mastercard shares followed a similar trajectory, slipping 0.5% on the same day but still registering a solid 12% rise throughout the year.

Industry Shifts Affecting Visa and Mastercard Valuations

Analysts highlight that the valuations of Visa and Mastercard have primarily adjusted due to technical reasons. This is largely due to investors switching their focus from certain sectors to the flourishing field of artificial intelligence.

Strong Business Momentum Despite Market Rotations

Despite market rotations, the business momentum for both Visa and Mastercard remains robust. Both networks have seen nine consecutive quarters of positive revenue and EPS surprises. MoffettNathanson emphasizes that no new or unusual threats that could potentially harm their valuation are on the horizon.

Outperform Rating Reiterated for Both Financial Giants

MoffettNathanson reaffirms its 'outperform' rating for both Visa and Mastercard, reflecting their strong standing and promising potential in the financial sector.